Avion's management acquires remaining 49% of company

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Icelandic company Eimskipafelag Islands has reached an agreement to sell its 49% share in its Avion Aircraft Trading operation to the division’s management team.

The acquiring party – which includes Avion Aircraft Trading chairman Hafthor Hafsteinsson and other managers – already holds the other 51% of the company.

Eimskipafelag Islands stated in May that it was preparing to sell the remaining Avion stake, and was also considering divesting its wholly-owned wet-lease operator Air Atlanta Icelandic.

It says that a conditional agreement on the sale was reached at the end of July, and that associated provisions have since been lifted.

“We have had a very enjoyable collaboration [over] the last half-year but considered this the right time to acquire the remaining shares in the company,” says Hafsteinsson.

“We are working on some very exciting projects and expect great opportunities supporting this investment.”

Avion, which was established two years ago, has acquired, re-sold and leased a total of 36 aircraft.

Proceeds from the Avion sale, to be recorded in third-quarter figures, will be around $28 million and the profit before tax for the disposal is expected to be $24 million. The proceeds will be used to repay investment loans in other business areas.